Sep

30

The Irony of China’s Most Recent Bitcoin Ban
by Peter C. Earle

In light of both its history and the decentralized nature of crypto, it’s difficult to see this latest ban as anything but terrifically bullish for the development of the sector as a whole. It forces miners located in China taking advantage of cheap development and energy costs to move elsewhere, likely resulting in greater geographic diversification. (The concentration of hashing power in China-based mining facilities was seen as an existential vulnerability to Bitcoin by some observers; yet for several months an exodus of mining operations has been underway.) The crackdown will likely induce more research into energy-efficient means of mining. And there will undoubtedly be increased innovation directed at the concealment of ‘on and off ramps.’

Steve Ellison adds:

The power shortage in China is the least expected and most interesting news of the week, apparently driven by a push to reduce carbon emissions.

China’s Manufacturing Weakens, as Power Cuts Threaten More Damage
Contraction ends 18-month expansion that powered the country’s recovery from the Covid-19 pandemic

BEIJING—China’s manufacturing activity contracted in September, ending an 18-month expansion that powered the country’s recovery from the pandemic, with power curbs in hubs threatening further disruption.

China’s manufacturing purchasing managers index fell to 49.6 in September, the National Bureau of Statistics in Beijing said Thursday. That marks the gauge’s first drop below the 50 mark that separates an expansion of activity from contraction since February 2020, when the metropolis of Wuhan and surrounding Hubei province were shut down to contain the fast-spreading virus.


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1 Comment so far

  1. US Mint on September 30, 2021 12:44 am

    Looks like this was published right before this week’s news of widespread Chinese throttling of power throughout their country with restrictions/shortages lasting untiil spring of 2022.
    Are they blaming crypto miners for these shortages or using the shortages as an additional purge(re-education) of the miners? Both?

    “Never let a crisis go to waste”
    Rahm for Amabassdor to China!

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